Section 584.1 - DefinitionsThe following words and phrases when used in this act shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning.
(1) "Person." Any individual, partnership, limited partnership, association or corporation. Whenever used in any clause prescribing or imposing a penalty the term "person," as applied to associations, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.(2) "Business." Carrying on or exercising for gain or profit within a school district of the first class, any trade, business, including financial business as hereinafter defined, profession, vocation, or commercial activity, or making sales or persons within such school district of the first class. "Business" shall not include the following: "Any business conducted by a non-profit corporation or association organized for religious, charitable, or educational purposes, the business of any political subdivision, or of any authority created and organized under and pursuant to any act of Assembly, the specific business conducted by any public utility operating under the laws, rules and regulations administered by the Pennsylvania Public Utility Commission of furnishing or supplying service or services at the fixed rates specified in its tariffs, the business of any insurance company, association or exchange, or any fraternal, benefit, or beneficial society of any other state under the laws of which insurance companies, associations or exchanges, or fraternal, benefit, or beneficial societies of this Commonwealth doing business in such other state are subjected, by reason of the tax imposed by this act, to additional or further taxes, fines, penalties or license fees by such other state, and any employment for a wage or salary."(3) "Financial Business." The services and transactions of private banks and bankers, building and loan associations, savings and loan associations, credit unions, savings banks, banks, bank and trust companies, trust companies, investment companies registered as such with the Federal Securities and Exchange Commission, holding companies, dealers and brokers in money, credits, commercial paper, bonds, notes, securities and stocks, monetary metals, factors and commission merchants.(4) "Tax Year." The twelve month period from January 1 to December 31.(5) "Receipts." Cash, credits, property of any kind or nature, received in or allocable to a school district of the first class from any business or by reason of any sale made, including resales of goods, wares or merchandise taken by a dealer as a trade-in or as part payment for other goods, wares or merchandise or services rendered or commercial or business transaction had within a school district of the first class, without deduction therefrom on account of the cost of property sold, materials used, labor, service, or other cost, interest or discount paid, or any other expense. "Receipts" shall exclude (a) the amount of any allowance made for goods, wares or merchandise taken by a dealer as a trade-in or as part payment for other goods, wares and merchandise in the usual and ordinary course of his business; (b) in the case of a financial business, the cost of securities and other property sold, exchanged, paid at maturity, or redeemed, and moneys or credits received in repayment of advances, credits and loans, but not to exceed the principal amount of such advances, credits and loans, and shall also exclude, deposits, and in the case of building and loan or savings and loan associations, payments received on account of shares purchased by shareholders; (c) in the case of a broker, any commissions paid by him to another broker on account of a purchase or sales contract initiated, executed or cleared in conjunction with such other broker; (d) the receipts or the portion thereof attributable to any sale involving the bona fide delivery of goods, commodities, wares or merchandise of the taxpayer's own manufacture, growth or produce, to a location regularly maintained by the other party to the transaction outside the limits of such school district, and not for the purpose of evading or avoiding payment of the tax or any portion thereof imposed under this act; (e) receipts by dealers from sales to other dealers in the same line, where the dealer transfers title or possession at the same price for which he acquired the goods, wares or merchandise. For the purpose of determining taxable receipts from sales made by a manufacturing corporation of goods, commodities, wares and merchandise of its own manufacture through a wholly owned distributing corporation, such sales shall be treated as if made directly by the manufacturing corporation to the vendees of the distributing corporation. For the purpose of determining taxable receipts from sales made by a manufacturing corporation of goods, commodities, wares and merchandise of its own manufacture made through a distributing corporation, such sales shall be treated as if made directly by the manufacturing corporation to the vendees of the distributing corporation, if a majority of the shares of stock of both the manufacturing corporation and the distributing corporation is owned by the same individual, association or corporation. For the purpose of determining receipts from the business of insurance, such receipts shall mean those from premiums received from risks within the school district of the first class, whether by mutual or stock companies, domestic or foreign, without any deductions therefrom for any cost or expense whatsoever. The collector shall determine from such data as he shall require from insurance companies subject to this act, the amount of such receipts, and shall ascertain the amount of the tax in accordance with such determination; (f) dividends received by one corporation from another corporation of which it owns at least twenty (20) per centum of the voting power of all classes of stock and at least twenty (20) per centum of each class of non-voting stock; (g) receipts by a corporation which is a member of an affiliated group from other members of the same affiliated group.(6) "Collector." The receiver of school taxes, or in a school district of the first class in which there is no such receiver of school taxes, the school treasurer.(7) "Net Income." Net income shall be the income from any business activity as returned to and ascertained by the Federal Government.(8) "Dividend." Any distribution made by a corporation to its shareholders in respect of its stock, whether ordinary, extraordinary or in liquidation.(9) "Affiliated group." One or more chains of corporations connected through stock ownership with a common parent corporation if (a) stock possessing at least eighty (80) per centum of the voting power of all classes of stock and at least eighty (80) per centum of each class of the non-voting stock of each such corporation (except the common parent corporation) is owned directly by one or more of the other such corporations; and (b) the common parent corporation owns directly stock possessing at least eighty (80) per centum of the voting power of all classes of stock and at least eighty (80) per centum of each class of the non-voting stock of at least one of the other such corporations. As used in this definition, "stock" does not include non-voting stock which is limited and preferred as to dividends.1949, May 23, P.L. 1669, § 1. Amended 1951, May 10, P.L. 265, No. 45, § 1; 1951, Sept. 29, P.L. 1629, § 1; 1953, May 22, P.L. 1357, § 1; 1956, Feb. 10, P.L. (1955) 1012, § 1; 1956, Feb. 10, P.L. (1955) 1014, §§ 1, 2; 1956, Feb. 10, P.L. (1955) 1034, § 1; 1956, May 25, P.L. (1955) 1754, § 1; 1957, July 17, P.L. 961, § 1; 1959, Dec. 30, P.L. 2069, § 1; 1961, June 15, P.L. 442, § 1; 1967, Nov. 16, P.L. 504, § 1; 1974, June 27, P.L. 392, No. 134, § 1, imd. effective.